Why is Goodwill industries in the United States still considered a nonprofit charity when they spend $100 million on their regional CEO pay to about 15 people
I couldn't find a source for the $100 million figure, so I'd check it before building on it. Goodwill isn't one organization. It's a federation of separate local nonprofits, each with its own Form 990 filed with the IRS. ProPublica's Nonprofit Explorer shows what those filings report. Goodwill Industries of Greater New York and Northern New Jersey reported total executive compensation of $1,894,289 in one year, and its president and CEO was paid $615,643 of that. Goodwill of Colorado's CEO was paid $687,392 in one year. Goodwill Industries of Sacramento Valley & Northern Nevada reported $2,286,593 across its executives, including a regional director. Those are real amounts, but they are per organization, not a $100 million pool.
Nonprofit status doesn't depend on how much pay is high. Under U.S. tax law (section 501(c)(3)), no part of the net earnings may benefit a private person, and that rule is enforced through reasonableness tests. Boards are expected to set pay by comparing it with similar organizations and to document the decision. The IRS can also penalize insiders who receive excess benefits under section 4958. High pay can be a legitimate question about whether a specific organization's pay is reasonable. It isn't in itself a reason to lose tax-exempt status.
If you have a specific filing or article behind the $100 million number, send it and I'll go through the figures with you.
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